Strategic realignment of the Robotics Division: ABB is planning outsourcing its robotics division

Published on: April 18, 2025 / update from: April 18, 2025 - Author: Konrad Wolfenstein

Strategic realignment of the Robotics Division: ABB is planning outsourcing of its robotics division-Image: Xpert.digital

Milestone at ABB: Robotics as an independent company until 2026

Future strategy: ABB relies on independent robotics division

ABB, the Swiss-Swedish technology group, announced on April 17, 2025 the planned outsourcing of its Robotics division-an important step in the strategic realignment of the company. The robotics area is to be established as an independent, listed company by the second quarter of 2026. This decision marks another milestone in ABB's long -term transformation from a diversified industrial conglomerate into a focused technology leader in the field of digital industries.

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Background and details of the planned outsourcing

ABB has initiated a process that aims to present the General Assembly 2026 a complete spin-off (100 percent) of the Robotics division to vote. If the shareholders are approved, the business should start trading in the second quarter of 2026 as an independent listed company. The outsourcing would be carried out by a stock release, in which the existing ABB shareholders receive shares in the new company (working title: “ABB Robotics”) as a factual dividend for their previous shares.

The ABB Robotics division employs around 7,000 people and generated sales of $ 2.3 billion in 2024, which makes up for about 7 percent of ABB of group sales. The operative EBITA margin amounted to 12.1 percent. This is significantly below the overall margin of the ABB Group of 18.1 percent. As part of the restructuring, the Division Machine Automation (which also includes the automation specialist B&R also belongs) will be assigned to the process automation, which is currently located with ABB Robotics in the Robotik & Manufacturing Automation Division (which also includes the automation specialist B&R.

Strategic justification for the split

ABB gives several strategic reasons for the outsourcing of the robotics division. One main argument is limited synergy between the Robotics division and the other ABB business areas. According to Morten Wierod, CEO of ABB, there are “only limited synergies in relation to business and technology between ABB Robotics and the other ABB divisions that have other demand and market features”.

Different market dynamics as a driving factor

The robotics industry has a different market dynamics than the core transactions of ABB in the area of electrification and industrial automation. The division is currently suffering from the problems of many major customers from the automotive industry, but was able to create a trend reversal in the first quarter of 2025 with strong growth in order. ABB Robotics is the second largest manufacturer of industrial robots worldwide after the Japanese company Fanuc, other competitors are the Augsburg Kuka and the Japanese Yaskawa.

Expected advantages for both companies

Peter Voser, Chairman of the Board of Directors of ABB, emphasizes that the independence of ABB Robotics "will strengthen the ability of both companies to create customer benefit, grow and attract talents". Both companies would benefit from a clearer governance and capital allocation. This corresponds to the assessment of analysts that “ABB strives for earnings quality and optimization, not in terms of absolute size - in line with the shareholder”.

Classification in the long -term strategy of ABB

The outsourcing of the robotics division is part of a group renovation that has been running for years. ABB already sold its power grid business to Hitachi for almost eight billion dollars in 2018, sold the clutch and gearbox manufacturer Dodge for $ 2.9 billion in 2021 and independent the turbocharger accelerone in 2022.

Transformation to the technology leader for digital industries

Already in December 2018, ABB announced “Fundamental measures to focus and simplify the business and to strengthen the technology leadership in digital industries”. The strategy at that time emphasized the realignment of ABB as a “focused global technology leader, which is active in attractive markets and has a unique range of innovative solutions in the areas of electrification, automation, robotics and digitization”.

With the now announced outsourcing of the robotics division, ABB seems to consistently pursue this strategic line-but with an even stronger focus on electrification and automation. Morten Wierod confirms this by explaining: “Active portfolio management is part of our business practice”. ABB will separate from other areas if necessary, but at the same time increasingly look for acquisitions.

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The profile of ABB Robotics as an independent company

ABB Robotics positions itself as a technology leader for intelligent automation solutions that help customers worldwide to make processes more productive, more flexible and easier. The division offers a comprehensive robotics platform including autonomous mobile robots, software and AI, paired with specialist and industry skills for a wide range of traditional and new industrial segments. More than 80 percent of the offer are software/AI.

Market position and growth potential

ABB Robotics claims to have a strong performance certificate in your industry and has shown double -digit margins in most quarters under the decentralized operating model ABB Way since 2019. The division produces robots in China, Sweden and the USA based on the “Local-For-Local” principle with regional production centers.

The construction industry is an interesting growth field for ABB Robotics. ABB drives automation in the construction industry with robot -based automation solutions in order to cope with challenges such as the need for more affordable and environmentally friendly living space as well as the shortage of labor. According to Sami Atiya, current head of the Robotics & Manufacturing ABB business area, “enormous potential to fundamentally change the industry by using robotics”.

Evaluation and IPO

Abb-CEO Wierod did not want to comment on the future stock exchange assessment from ABB Robotics. Analysts appreciate the value of ABB Robotics at around $ 2.7 to 3.3 billion dollars (Enterprise Value), based on the usual relationship between the result and the stock market value in the industry. ABB is considering a listing on the Swiss or Swedish stock exchange.

Robotics outsourcing: Fig strengthens focus on automation and electrification

The outsourcing of the robotics division fits into the long-term strategy of ABB to position yourself as a focused technology leader for digital industries with a focus on electrification and automation. The restructuring should enable both companies to concentrate better on their respective core competencies and markets.

The decision was received positively by investors: While the European industrial values on the stock exchange gave up as a whole, ABB shares rose by 1.4 percent after the announcement. The largest owner, the investment company of the Swedish Wallenberg family, is also behind the crotch and describes it as a “industrial-political step, which creates two companies, which focus even more, have strong potential for continuing profitable growth and create added value for their shareholders”.

The planned split off of ABB Robotics marks another important milestone in the strategic realignment of ABB. It underlines the company's focus on value optimization and targeted market leadership instead of the mere size. This opens up new opportunities for both companies-the remaining ABB core business and the independent ABB Robotics in the future-to sharpen their respective business models and to generate growth in their specific markets.